Tim Murphy, VP Digital Strategy at Entercom on how a DMP enables him to reach listeners in a much better way and then target them with more relevant content, marketing and advertising.
We are a broadcast company at our core. We broadcast radio programming out to large swathes of the US population, but the market is changing.
Our big challenge is to create one-to-one relationships with members of those mass audiences and develop closer, more personalized ties with them.
Let’s not forget that mass reach and general entertainment are still incredibly powerful. Our broadcast content is hugely valuable.
People think that only one-to-one targeting will be successful in the digital age, but the Super Bowl has never been more popular and America’s Got Talent is watched by nearly everybody.
So creating entertainment with mass appeal is still a very good business model. However, the advertising you sell around that mass appeal content needs to become more personalized, so what we are working on is people consuming mass appeal content on a digital pipe but with personalized advertising around that content.
This is a double challenge. We have the reach part – we are great at reach. Most of those people we are reaching do want to have a digital relationship with us as well as a broadcast relationship.
If we don’t have a treasure trove and a critical mass of first-party data about our listeners, we will become obsolete because our competitors will have that level of data. So I think there is a race to data and those who think otherwise are really in trouble.
“You have to get that data: you need to be a first-party, data-rich enterprise to be viable”
Facebook, more so than Google, has changed the world for publishers. Google is a content company, but Facebook is an audience company. Every media brand has to consider how social and mobile have changed their business in the last three or four years.
As a company that sells advertising, we are competing head on with Facebook. They have both huge reach – 90% of the population – and 100% of these users are identifiable, offering powerful micro-targeting capabilities. They can target to granular levels based on preferences. So as an ad model competing with Facebook, we are under tremendous pressure to offer similar capabilities.
This is why personalization suddenly matters. On demand and time shift content is becoming more popular, so if there was a segment at our WRKO radio station in Boston about Donald Trump’s speech at the Republican National Congress, a lot of people who aren’t WRKO fans who are interested in that story will see it when they search on the web.
We can introduce it because we have a lot of data about that piece of audio and that person out there we can connect them to audio in a very personalized way and that might introduce them to more general evergreen content of WRKO. So they may say, “I wasn’t familiar with WRKO, but that was an interesting take on the Trump speech, I’m going to listen to that station or subscribe to this podcast”.
The radio companies that will be doing well in five years from now will have proactively tried to move their listener to a digital relationship as well as a broadcast relationship.
And when we have that digital relationship we really work hard to convert them into a de-anonymized, known person that we can collect a lot of information about. Then we can inform our buyers about who they are reaching in a much better way and then target them when they are on digital platforms with more relevant content, marketing, and advertising.